By 8 AM, most breakfast delivery operators realize their margins are thinner than expected. Hidden logistics costs like specialized packaging, fuel expenses, and platform fees stack up fast. Here's exactly how to calculate what each delivery truly costs your business.
What are logistics costs in breakfast delivery?
Logistics costs encompass every expense required to get breakfast from your kitchen to the customer's door. Beyond obvious fuel costs, you're dealing with packaging materials, driver wages, route inefficiencies, and return trips.
- Packaging costs (boxes, bags, cutlery)
- Delivery costs (fuel, wear and tear, insurance)
- Delivery driver labor costs
- Platform fees (if you deliver via apps)
- Return costs for empty packaging
Packaging costs per order
Calculate all packaging materials per order first. Most operators underestimate this expense, which typically runs 8-15% of order value.
💡 Example packaging costs:
Average breakfast order for 2 people:
- 2 breakfast boxes: €0.85
- Paper bag: €0.12
- Cutlery and napkins: €0.18
- Stickers and tape: €0.05
Total packaging: €1.20
Track packaging expenses for one full week across all orders. Add up materials used and divide by total orders completed. This reveals your true average packaging cost per delivery.
Calculate delivery costs
Delivery expenses include direct costs like fuel plus indirect costs such as vehicle wear, insurance, and depreciation. Use €0.35-0.45 per kilometer for delivery scooters or bikes.
💡 Example delivery costs:
Delivery route of 8 km with 4 stops:
- Total distance: 8 km
- Cost per km: €0.40
- Total delivery costs: €3.20
- Per order: €3.20 ÷ 4 = €0.80
Delivery cost per order: €0.80
⚠️ Note:
Don't forget the return trip to your kitchen. Many operators overlook this, effectively missing half their actual delivery costs.
Delivery driver labor costs
Driver wages extend beyond hourly pay. Factor in employer contributions like social security, insurance, and holiday pay - typically 30-40% above base wage.
- Driver hourly wage: €12-15 per hour
- Employer contributions: +35%
- Total costs: €16-20 per hour
Divide hourly costs by orders completed per hour. Most kitchen managers discover too late that breakfast delivery drivers average just 3-5 orders hourly due to longer preparation times and traffic patterns.
💡 Example labor costs:
Driver earns €14/hour, employer contributions 35%:
- Total cost per hour: €14 × 1.35 = €18.90
- Orders per hour: 4
- Labor cost per order: €18.90 ÷ 4 = €4.73
Labor cost per order: €4.73
Include platform fees
Third-party delivery platforms charge commission ranging from 15-30% of order value. These fees must be factored into logistics calculations.
- Thuisbezorgd: 13-15% + €0.35 per order
- Uber Eats: 15-30% depending on contract
- Deliveroo: 15-35% depending on services
⚠️ Note:
Platform fees calculate on total order value including VAT, making them costlier than they appear. A €25 order with 15% commission costs you €3.75.
Total logistics costs per order
Sum all components to determine true logistics expenses. This reveals what delivery actually costs your operation.
💡 Total example:
Breakfast order of €25 (incl. 9% VAT):
- Packaging: €1.20
- Delivery (transport): €0.80
- Driver labor: €4.73
- Platform fee (15%): €3.75
Total logistics costs: €10.48
This is 42% of your order value!
Impact on your profit margin
Logistics costs of €10.48 on a €25 order leaves €14.52 for ingredients, kitchen operations, and profit. With 30% food costs (€6.87), you've got €7.65 remaining for overhead and margins.
This explains why breakfast delivery businesses struggle without minimum order requirements or customer-paid delivery fees.
How do you calculate logistics costs? (step by step)
Inventory all packaging materials
Make a list of all packaging per order: boxes, bags, cutlery, napkins, stickers. Add up the costs and divide by the number of orders to get your average packaging cost.
Calculate transport and labor costs
Calculate €0.35-0.45 per kilometer for transport. Add your driver's hourly wage plus 35% employer contributions, divide by the number of orders per hour. This gives you the labor cost per order.
Add platform fees and other costs
Add commissions from delivery platforms (15-30% of order value). Add up all costs: packaging + transport + labor + platform fees = total logistics costs per order.
✨ Pro tip
Recalculate logistics costs every 6 weeks during peak breakfast season. Fuel prices shift, platform fees change, and what looked profitable in January might drain profits by March.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
What's a realistic logistics cost for breakfast delivery?
Logistics typically cost €8-12 per order, representing 30-45% of a €25 average order value. This includes packaging, fuel, labor, and platform fees.
Should I calculate return trips to my kitchen in delivery costs?
Absolutely. Return trips consume fuel and time just like customer deliveries. Always use total kilometers driven, not just one-way distance to customers.
How can I reduce logistics costs per order?
Raise minimum order values, optimize delivery routes, negotiate better platform rates, or charge customers for delivery. Each euro saved flows directly to profit margins.
Are delivery platform commissions tax-deductible?
Yes, platform commissions qualify as deductible business expenses. Maintain all invoices and platform statements for accurate tax records.
What if logistics costs exceed my food costs?
This happens frequently with delivery operations. Consider higher minimums, customer delivery fees, or focusing on pickup orders to maintain profitability.
How do I handle variable fuel prices in cost calculations?
Update your per-kilometer rate monthly based on current fuel costs. Build a 10-15% buffer into calculations to account for price fluctuations.
Should I factor in failed delivery attempts?
Yes, include roughly 5-8% additional costs for failed deliveries, wrong addresses, or customer unavailability. These wasted trips still consume resources and time.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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